Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

17.08.2020
2 min read

American bankers talk about the vulnerability of the dollar: an analyst by Chaslau Koniukh.

The coronavirus pandemic has caused enormous damage to the world economy and revealed the vulnerability of the US market. It has forced many investors to reconsider traditional processes, to think about the reliability of the dollar as an asset. Their doubts are also shared by reputable American bankers from JPMorgan and Goldman Sachs, who recommend investing in gold, not in the national currency.
Analysts at JPMorgan conducted a study, where they came to the conclusion that those measures that central banks are taking to stabilize the global economy, can slow down the processes and devalue currencies. In this case, the cost of gold, on the contrary, will strengthen. Despite the fact that the dollar is less vulnerable than other currencies, still in the form of investments should pay attention to the precious metal.
Bankers assess the situation not only in terms of inflation, but also taking into account the weakness of the financial system. On the international arena, the yuan is expanding its influence, and recently its digital version. Electronic money may become a direct threat to the American currency, although it will not come soon.
However, if the development of the digital yuan continues at an active pace, the threat of ousting the dollar from the market will be quite realistic. In addition, the EU, which is also working on the electronic version of the euro, should not be discounted. This type of currency has good prospects – they operate outside the banking system, do not need SWIFT, which will reduce the leverage of the U.S. in financial terms.
That’s why big American banks weigh all factors and risks and develop new strategy. The Coronavirus pandemic has shown the system’s weaknesses, and in order to protect its assets, one must act with caution. Bankers and investors understand this and have already started buying precious metals. However, they were not the first to see the prospect in bullions. The central banks of European countries and China have been building up gold reserves for several years now, returning to the state assets that were kept outside of the country. We can say one thing – reconfiguration of the financial system has already begun, but how quickly it will be implemented and where it will lead – it is difficult to say yet.
Another blow to the dollar may be the reduction of Chinese investments in US bonds. Now Beijing owns $1.1 trillion worth of securities, but intends to reduce their number in the near future. Such actions are a reaction to the aggravation of trade conflict between the countries. Such a situation is extremely unfavorable to the White House, which increases the issue of securities to support the economy.

Chaslau Koniukh
Expert Chaslau Koniukh

Chaslau Koniukh supports the recommendations of bankers, who at the moment recommend to take a closer look at investments in gold. All of the above factors may lead to weakening of the dollar and on the distance, for investors, it may affect financially for the worse.

Tags: Analytics
0
Previous Post What a broker's leverage means: the essence of the term Next Post JPMorgan Chase Co - a giant in the market of financial services

You Might Also Like

Reasons for rising aluminium prices
Analytics
Otkritie Broker analysts: expect aluminium prices to rise in the long term
05.11.2021
ruble collapse
Analytics
Noble Russian Finance Club: ruble collapse is inevitable, but no one knows when
21.09.2021
Chaslau Koniukh
Analytics
Chaslau Koniukh: Global market shares show good growth
06.10.2020
shares of Virgin Galactic
Analytics
Wall Street analysts recommend buying Virgin Galactic shares
30.03.2021
collapse of quotations
Analytics
Is the oil market waiting for another collapse of quotations: the opinion of a LUKOIL analyst?
08.06.2020
Barclays: America's stock market
Analytics
How will the American stock market behave in the short and long term
26.10.2021

Recent Posts

  • 1DoorDash
    How DoorDash food delivery service succeeded in the U.S. market
    29.06.2022
  • 2Performance marketing-1
    What you need to know about performance marketing: its trends
    28.06.2022
  • 3Counterparty risk definition
    Counterparty risk: when it is important to measure its level
    27.06.2022
  • 4Inflation in Europe
    Inflation in Europe to outpace that in the US: analysts forecast
    26.06.2022
  • 5OpenSea NFT platform
    OpenSea’s NFT platform hits the $13.3 billion mark
    25.06.2022

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • CloudKitchens startup has received investments from Saudi Arabia

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Latest Posts

billionaire John DeJoria
John DeJoria: from a homeless man to a billionaire
30.06.2022
DoorDash
How DoorDash food delivery service succeeded in the U.S. market
29.06.2022
Performance marketing-1
What you need to know about performance marketing: its trends
28.06.2022

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • CloudKitchens startup has received investments from Saudi Arabia
  • The concept of deflation: causes and consequences
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics